The Impact of Fuel Price on SMEs in Oman

This research aims to examine the impact fuel prices on the small and medium scale enterprises in Oman. The fluctuation of oil prices have deep impact on the economy of any country. The small and medium enterprises are responsible for the growth and development an economy. This means that these factors affect the economy and is expected to have significant influence on each other. Therefore, this research has aimed to address this perspective to shed light on the challenges facing the small and medium scale organizations (SMEs) in dealing with the change in fuel prices.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author note

1MANAGEMENT
Abstract
This research examined the impact of the fall of fuel prices on the SMEs in Oman. Oman had
been dependent on the oil and gas industry to boost their economy. However, the massive
increase in supply in the global market and fluctuation of oil prices had heavily affected the
SMEs. The SMEs are faced with significant challenges due to the removal of subsidy from
the government and increase in interest rates charged by financial institutions. Similarly, the
increase in inflation rates to 0.90 in 2012 increased the cost of resources and good which has
also affected the productivity of the companies. The analysis of the past literature had shown
that there is very little analysis specifically on Oman and majority of the researches have
taled challenges faced by SMEs in MENA region. The research methodology had used a
mono method where quantitative data has been collected through surveys to 100 employees’
working in SMEs. The result showed that financial institutions charged high interest rates for
their services. The frequency of loan approvals had decreased and there is stringency in
providing Moreover, the removal of subsidy from the government has affected the micro
organizations tremendously as they are not getting enough support to flourish. The small
scale organizations having very less employees does not have the capability of adapting to
their changes due to their limited capability of resources. The research had provided solutions
for addressing these challenges in the final chapter of the research paper.

2MANAGEMENT
Table of Contents
1.0 Introduction..........................................................................................................................6
1.1 Background of the research..................................................................................................6
1.2 Research problem.................................................................................................................6
1.3 Research Purpose.................................................................................................................7
1.4 Research objectives..............................................................................................................7
1.5 Research Question................................................................................................................7
1.6 Research hypothesis.............................................................................................................7
1.7 Summary..............................................................................................................................7
2.0 Literature Review.................................................................................................................8
2.1 Introduction..........................................................................................................................8
2.2 Fuel prices volatility.............................................................................................................8
2.3 Organizational Performance.................................................................................................9
2.4 Literature Gap....................................................................................................................10
2.5 Summary............................................................................................................................10
3.0 Research Methodology.......................................................................................................12
3.1 introduction........................................................................................................................12
3.2 Research Philosophy..........................................................................................................12
3.3 Research Approach............................................................................................................12
3.4 Research Design.................................................................................................................13
3.5 Data collection and analysis...............................................................................................13
3.6 Sampling method...............................................................................................................13
3.7 Reliability and Validity......................................................................................................14
3.8 Ethical consideration..........................................................................................................14
3.9 Summary............................................................................................................................14
4.0 Findings and Analysis........................................................................................................15
4.1 Introduction........................................................................................................................15
4.2 Reliability analysis.............................................................................................................15
4.3 Quantitative analysis..........................................................................................................17
4.4 Correlation analysis............................................................................................................30
4.5 Regression analysis............................................................................................................30
4.6 Summary............................................................................................................................35
5.0 Conclusion and recommendation.......................................................................................36

3MANAGEMENT
5.1 Conclusion..........................................................................................................................36
5.2 Recommendations..............................................................................................................36
References................................................................................................................................38
Appendices...............................................................................................................................40
Appendix 1...............................................................................................................................40
Appendix 2...............................................................................................................................45

4MANAGEMENT
List of Tables
Table 1: Reliability Statistics...................................................................................................15
Table 2: Item Statistics.............................................................................................................16
Table 3: Item Total Statistics...................................................................................................16
Table 4: Age.............................................................................................................................17
Table 5: Gender........................................................................................................................18
Table 6: High interest rate........................................................................................................19
Table 6: Government service charges......................................................................................19
Table 7: Flexibility in providing loans.....................................................................................20
Table 8: Government is supporting SMEs...............................................................................21
Table 9: Timely payments........................................................................................................22
Table 10: Removing subsidy....................................................................................................23
Table 11: Increase in visa fees.................................................................................................24
Table 12: Factors affecting SMEs performances.....................................................................25
Table 13: Service quality.........................................................................................................27
Table 14: Flexibility of operations...........................................................................................27
Table 15: Cost of operations....................................................................................................28
Table 16: Most affected sector.................................................................................................29

5MANAGEMENT
List of Graphs
Graph 1: Age............................................................................................................................17
Graph 2: Gender.......................................................................................................................18
Graph 3: High interest rate.......................................................................................................19
Graph 4: Government service charges.....................................................................................20
Graph 5: Flexibility in providing loans....................................................................................21
Graph 6: Government is supporting SMEs..............................................................................22
Graph 7: Timely payments.......................................................................................................23
Graph 8: Removing subsidy.....................................................................................................24
Graph 9: Increase in visa fees..................................................................................................25
Graph 10: Factors affecting SMEs performances....................................................................26
Graph 11: Service quality.........................................................................................................27
Graph 12: Flexibility of operations..........................................................................................28
Graph 13: Cost of operations...................................................................................................29
Graph 14: Most affected sector................................................................................................30

6MANAGEMENT
Topic: The Impact of fuel price on SMEs in Oman
1.0 INTRODUCTION
This research aims to examine the impact fuel prices on the small and medium scale
enterprises in Oman. The fluctuation of oil prices have deep impact on the economy of any
country. The small and medium enterprises are responsible for the growth and development
an economy (Bouazza, Ardjouman and Abada 2015). This means that these factors affect the
economy and is expected to have significant influence on each other. Therefore, this research
has aimed to address this perspective to shed light on the challenges facing the small and
medium scale organizations (SMEs) in dealing with the change in fuel prices.
1.1 BACKGROUND OF THE RESEARCH
Small scale and medium scale organization contribute to the 90% corporate sector in
Oman and has a reasonable contribution to the GDP of Oman (DW 2019). However, this
contribution is quite less when compared to SMEs in developed countries such as in United
States (Zafar and Mustafa 2017). SMEs are essential for the development of the economy as
it facilitates in generating employment opportunities, increase in wealth and competition of
the country. It also enables new entrepreneurs to shape their ideas into realities. Small and
medium scale organizations have been facing various challenges but the falling oil prices
have been one of the major concerns for the firms (Bouazza, Ardjouman and Abada 2015). In
the year of 2015, the oil prices decreased significantly where the GCC countries were
impacted by the sharp fall in the oil prices (Boughanmi and Khan 2018). The boom in US
shale oil production, Libya’s increased in production and the increase in production of OPEC
raised the global output of oil significantly. The GCC countries were heavily affected by the
fall in the oil prices where countries like Oman were forced to remove subsidy from oil which
resulted in the change in the small and medium scale enterprises (World Bank 2018).
1.2 RESEARCH PROBLEM
The decrease in fuel prices in Oman resulted in the increases in charges imposed by
the government in various services. The companies have to renew their commercial register
which is one type of a company register every 5 years and increased the charges on inclusion
of new activities in the commercial register (DW 2019). The financial institutions and banks
increased the interest rates on services such as funds provided to the small scale organizations
and there has been reduction in the financial facility. SMEs are affected as financial

7MANAGEMENT
institutions are important fund sources to companies (Zafar and Mustafa 2017). Moreover,
higher priority has been given on government project as they are more secured and various
companies handling government project are receiving delayed payments. This has increased
the challenges facing the SME’s in Oman and the research has aimed to examine these
factors to identify the impact on the performance of the small and medium scale
organizations.
1.3 RESEARCH PURPOSE
The purpose of the research is highlighting the significant challenges and issues faced
by the SMEs in Oman. This research depicts these challenges and provides solutions to these
issues. This facilitates in providing significant knowledge to the budding entrepreneurs and
prepares them for the challenges to expect while starting a small scale business. The research
has provided solutions necessary for the sustainability of the organizations.
1.4 RESEARCH OBJECTIVES
The objective of the given research are as follows:
 To measure the impact of fall in oil prices on the performance of SME in Oman
 To identify the sectors that are highly impacted due to fluctuation and decrease in oil
prices
 To recommend preventive measures for managing the sustainability of small and
medium scale organizations
1.5 RESEARCH QUESTION
 How does the fall in oil prices impact the performances of SME in Oman?
 Which are the sectors impacted highly due to the fall in oil prices?
1.6 RESEARCH HYPOTHESIS
H0: There is no significant impact of oil prices on the performances of SME in Oman
H1: There is significant impact of oil prices on the performances of SME in Oman
1.7 SUMMARY
This chapter has highlighted the key issues and problems faced by the SMEs in Oman
along with the reasons for the decrease in oil prices in the country. The research problem has
been explained in detail to provide the context to which the research is being performed. The

8MANAGEMENT
objectives, hypothesis and the primary research have been formulated to provide a direction
to the research and define the aspects included with the research scope. The next chapter has
critically evaluated past literature to understand the concept of fuel price fluctuation and the
way it affects the economy and the companies within it.

9MANAGEMENT
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
This chapter evaluates past literature on instability in fuel prices to understand its
impact on oil prices in Oman. Fuel is one of the commercial commodities and affect both the
macro and micro economy of a country. Fuel price adjustment refers to the consistent change
in fuel prices in global market which results decrease or increase in global oil price
fluctuations. The change in fuel prices affects the global market in whole but its impacts on
the other business within the national boundary also very noticeable (Boughanmi and Khan
2018). Various businesses suffer from the frequent changes in fuel prices where the SMEs are
highly affected by this fluctuation which affects their productivity, turnover and profitability.
2.2 FUEL PRICES VOLATILITY
According to Serletis and Xu (2016), small and medium scale businesses are defined
as the organizations that independently operated, owned and are not determinate in the
process field. As stated by Asane-Otoo and Schneider (2015), the small and medium scale
organizations can be measured quantitatively by the sectional differences and employee
numbers. On the contrary, Apergis and Vouzavalis (2018) stated that SME can also be
measured qualitatively by indicating the group operating locally or the independent
managers. Dikova et al. (2016) states that small organizations play a significant role as a
safety in net in alleviating poverty. Asane-Otoo and Schneider (2015), stated that policies are
aimed to arouse efficiency in allocation of resources but the major consequences results in
effect which is unequal distributive. The major impact of the fuel price fluctuation is that the
consumers and the business entities have to take up some of its costs. Serletis and Xu (2016),
states that even though the large organizations are able to weather the impact of fuel price
adjustments, the small scale organizations face challenges while dealing this fluctuations.
Small and medium scale organizations have faced immense difficulties in dealing with these
challenges and have struggled to maintain their sustainability (Krane 2015). SME’s are
essential for creation and generation of new employment opportunities. However, literature
on the contribution of small scale organizations to the economy is blurred. There have been
few firms that have been able to cater to niche markets and gain profitability but the majority
of the business entities face challenges due to the increase in the cost of raw materials and
equipment resulting due to the higher fuel prices (Matar et al. 2015).

10MANAGEMENT
The fluctuation in oil prices is normal and keeps happening all the time and the
activities of the small scale organizations are constantly being affected which affects their
growth. Krane and Hung (2016) studied the different factors that have limited the growth of
small scale organization at the global level and the results showed a considerable amount of
limiting factors for the organizations. The results have been categorized into external and
internal factors where the internal factors consisted of the inability of the entrepreneurs to
understand the business principle dynamics (Apergis and Vouzavalis 2018). The external
factors are driven by policies and these factors are definitely acting as constraints for the
growth of the small scale organizations. Crude oil can be considered ass the single most
driving factor for the global economy and changes in the oil prices have significant impact on
the economic growth and welfare of a nation (Krane and Hung 2016). There are various
channels through which oil prices shocks are transmitted into the economy which results in
increase in production costs due to a positive oil price shock which restricts the output. This
implies that the small scale organizations from different areas of their operation which makes
it difficult for them to cope up with the market dynamics. Moreover, as the fall of fuel prices
directly impacts the economy and income of the government, it changes the spending pattern
of the government and development of new policies that affect the changes (Asane-Otoo and
Schneider 2015).
The sharp drop in the oil prices in the previous years have experienced a significant
change in the organizational policies in Oman. Oman, being the country having one of the
least oil and gas reserves among the GCC countries have turned to other sectors for the
growth of the economy (Boughanmi and Khan 2018). The turned to the debt market and
have taken bold steps such as subsidy cuts, increase in fees and reduction of benefits for the
workers in the public sector. The subsidy cuts amounted to more than 50% of the original
subsidy which means that the small and medium scale organization will not receive similar
amount of financial support and there will increase in cost of other commodities in the market
(Krane and Hung 2016). This has resulted in an increase in the inflation rate and the small
and medium scale organizations are not in positions to negotiate the prices concessions.
Moreover, they cannot pass on inflationary to the consumers as fall in oil prices and reduction
in income of the population affects their consumer spending.

11MANAGEMENT
2.3 ORGANIZATIONAL PERFORMANCE
Fuel price reduction or fall not only affects the oil and gas companies but also other
commodities in the market. Boughanmi and Khan (2018) stated highlights that small scale
organization are faced with challenges in obtaining credit loans for normal business
operations and project expansion. This effects the performance of companies due to the
increase in interest rates. The increase in tax rates and lack of financial assistance results in
managing productivity of small scale organizations. Aryee et al. (2016) states that
organizational performance is the central area focusing on management of private and public
organizations. The majority of the empirical studies on organizational performance has been
defined differently due to the diverse perspective of authors in different studies. Kucukaltan,
Irani and Aktas (2016) conducted an in depth analysis of organizational performance to
identify five integrative models classified as per the level of complexity, performance
measurement matrix, performance pyramid, stakeholder approach, balance scorecard and
organizational effectiveness model.
These models take performance indicators into account to measure the performance of
organizations of various types. The Fitzgerald model considers six performance indicators,
out of which four are factors leads to effective results (Masa'deh, Obeidat and Tarhini 2016).
Flexibility, quality of service, economy of resources and innovation are four factors that leads
to results such as financial and competitive performance. The Fitzgerald model is a
conceptual model but it has not been tested empirically. Similarly, another model proposed
by Cross and Lynch, (1989) includes factors and results; the performance pyramid model
consists of strategic indicators at the top and the operational indicators at the bottom factors
(Hemmeter et al. 2015). The strategic indicators consist of financial and market indicators.
The operational indicators consists of factors such as service/product quality, transformation
delay, cost and delivery delay. The mid-level indicators consist of factors such as flexibility,
productivity and customer satisfaction. The models used in examining the organizational
performance consists of financial and non-financial indicators along with factors that depicts
the results.
2.4 LITERATURE GAP
The majority of the literature has failed to conduct a quantitative analysis to establish
the relationship between fuel price fluctuation and organizational performance. There is lack
of empirical analysis and in depth data. Moreover, very few of the literature have assessed the

12MANAGEMENT
issues in GCC countries so the research would provide better results which could be used in
future research
2.5 SUMMARY
This chapter has critically evaluated the impact of the fuel price adjustments on the
small and medium scale organizations in different countries. The evaluation of the data shows
that small scale organizations have to go through immense challenges while dealing with the
fluctuations in fuel prices. The literature has also discussed model on organizational
performance but none of them has been empirically tested. The next chapter has developed
methods and instruments to test the models based on the hypothesis.

13MANAGEMENT
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
Research methodology consists of assumptions, concepts and frameworks that assists
in knowledge development. In this research, Saunders research onion has been used to define
the different research methods, instruments and assumptions. This research has used a mono
method research design which is based on quantitative data collection and analysis (Mackey
and Gass 2015). The main purpose of the current research is establishing the relationship
between fall in fuel prices and performance of the small and medium scale organizations. It
implies that explanation and measuring the causal relationship between the variables is the
purpose which means that the research will use an experimental research design.
3.2 RESEARCH PHILOSOPHY
As stated by Saunders et al. (2015), research philosophy is the system of assumptions
and beliefs essential for knowledge development. Research consists of assumptions at every
stage even if the researcher is not aware of it. These consists of assumptions that are
influenced by values (axiological assumptions), about the encountered realities (ontological
assumptions) and assumptions on human knowledge (epistemological assumptions)
(Saunders et al. 2015). There are mainly four types of research philosophies, positivism,
interpretivism, realism and pragmatism. Pragmatism focuses on using different methods to
address a research question. It is used for conducting a mixed method analysis. This method
uses both positivist and interpretivist views to address a research question. Interpretivism is
used to integrate human interest into the research and it facilitates in conducting qualitative
analysis of data. On the contrary, realism focuses on the idea that reality is independent of the
human mind. In this research, positivism has been chosen as the research philosophy as it has
facilitated in conducting quantitative analysis. Positivism relates to natural scientific
philosophical stance which aims to work with social reality that are observable to develop
generalisations (Hughes and Sharrock 2016). Positivism strictly focuses on the scientific
empiricist methods which aims to yield pure data which is uninfluenced by the human
interpretation. This would facilitate in discovering facts and realities that are observable and
measurable which can predict events and behaviours. The research questions aim to measure
the relationship between decrease in fuel prices and organizational performance is SMEs.
Moreover, it also measures the sectors affected mostly due to the decrease in fuel prices.

14MANAGEMENT
Therefore, the research aims to gather results that are observable and measurable necessary
for predicting future behaviours and events so positivism is the most suitable philosophy.
3.3 RESEARCH APPROACH
There are mainly two types of approaches in research, inductive and deductive
approach. Research approach comprises of two aspects collecting data and reasoning. The
difference between the inductive and deductive approach can be understood by the
significance of the hypothesis in the given research (Sekaran and Bougie 2016). Deductive
approach is used to test existing theories discussed in the literature review section by using
quantitative methods. On the contrary, inductive approach is used for developing new
theories and paradigms from subjective studies to provide meaning. In this research,
deductive approach has been used as every stage of the research onion is linked with each
other and positivism facilitates deductive approach for conducting quantitative analysis of
data.
3.4 RESEARCH DESIGN
Research design has been defined differently by different authors where it has been
considered as the method of choosing between qualitative and quantitative data. On the other
hand, it has also been described as the method of collecting data and analysing it effectively.
There are mainly three types of research designs, exploratory, explanatory and descriptive
research design (Kratochwill and Levin 2015). In this research, explanatory research design
will be used to analyse the cause and effect relationship between the two variables. On the
other, it would facilitate in performing descriptive study as well. The mono method design
will focus on collecting quantitative data and analyse it using statistical techniques.
3.5 DATA COLLECTION AND ANALYSIS
There are two types of data collection method, primary and secondary. This research
has secondary data collection method to acquire data on past literature in similar topics by
evaluating the peer review journals and articles. Primary data has been collected for testing
the hypothesis developed in the first chapter (Palinkas et al. 2015). The primary data has been
collected using a survey questionnaire which includes close ended questions developed on 5
point Likert scale and other demographic questions on multiple choice options so that
quantitative data can be collected and analysed to depict behaviour and phenomenon.

15MANAGEMENT
The collected data has been analysed using SPSS (statistical tool for social sciences).
The research has used inferential statistics to examine the impact of fall in fuel prices on the
performances of the small scale organizations. The responses collected has been represented
into frequency tables and charts. These response frequencies have been analysed to
understand the opinion of the participants on various questions. Pearson’s correlation has
been used to establish the direction and nature of relationship among the variables (Goertzen
2017). Regression analysis has been used to develop a predictive model that explains the
relationship between the variables.
3.6 SAMPLING METHOD
Sampling is the method of selecting elements from the total population (Bell, Bryman
and Harley 2018). In this research, the population of the Oman are the target population and
management employees working in the SMEs is the sampling frame. The research has used a
stratified sampling to randomly select respondents so that each element in the population has
the equal opportunity of being chosen in the research. In this research, stratified sampling has
been used to select sample elements from each sector so that all sectors have representation
without any bias. This means that different sectors are the strata and elements from each
strata has been chosen. The sample size of the research is 100 management employees
working in small and medium scale organizations in Oman.
3.7 RELIABILITY AND VALIDITY
Reliability is the capability of the research to replicate the results using different data
set. However, as this study is a cross section research, data has been collected at once to
reduce the time of the research. Cronbach’s alpha has been used to measure the reliability of
the collected data which measures the internal consistency and scale reliability (Bonett and
Wright 2015). The validity of the data has been measured by conducting a pilot study where
the questionnaire has been sent to 10 respondents to evaluate the appropriateness of the
research instruments.
3.8 ETHICAL CONSIDERATION
This research has adhered to all the ethical aspects by developing an informed consent
to provide adequate knowledge to the respondents regarding the purpose of conducting the
research. The research has maintained the privacy of the respondents by keeping their
anonymity. The data collected has not been used for any other purposes in the research. This

16MANAGEMENT
research has ensured that plagiarism, falsification and fabrication has been avoided (Quinlan
et al. 2019). The questionnaire has note used any abusive or discriminatory languages that
may hurt the sentiments of the participants. The participants have made voluntary
participation in the research and they had the option of leaving at any point. None of the
respondents have been harmed while conducting the survey.
3.9 SUMMARY
This chapter has described the research methods, instruments and design used for
collecting and analysing data. The research chose positivism as the research philosophy and
deductive approach to test the hypothesis and generate results based on the research question.
The explanatory research design has been chosen as the approach as it facilitated in
establishing the casual relationship between the variables. Saunders Onion has been followed
as the research framework which has linked methods in each of the layers. The participants of
the research has been chosen using primary data collection through surveys where employees
from different sectors working in SMEs have been chosen. The next chapter has collected
data as per the research methods, instruments and frameworks mentioned in this chapter to
generate research findings.

17MANAGEMENT
4.0 FINDINGS AND ANALYSIS
4.1 INTRODUCTION
This chapter has performed the data analysis based on the data collected by using
statistical tools and techniques. The results have been developed by taking into account the
objective of the research. This chapter has performed reliability analysis to measure the scale
reliability of the collected data. Pearson’s correlation and linear regression has been used to
evaluate the relationship between the variables and develop a predictive model.
4.2 RELIABILITY ANALYSIS
Reliability analysis has been used to measure the scale reliability and internal
consistency of the collected items within the research. Cronbach’s Alpha has been performed
to check the internal consistency and the value greater than 0.6 is acceptable. The reliability
statistics shows that the value of alpha is .933 which implies that the internal consistency
among the items are high. The evaluation of the item total statistics highlights the value of
alpha when one of the items are deleted. The value of alpha decreases in majority of the
cases but in case of two items the value of alpha as those variables are nominal variables and
are not scale variables. These two variables are factors affecting the performance of SMEs
and most affected sector due to the fall in fuel prices.
Reliability Statistics
Cronbach's
Alpha
N of Items
.933 12
TABLE 1: RELIABILITY STATISTICS
(Source: As created by author)
Item Statistics
Mean Std. Deviation N
High interest rate 1.93 1.075 100
government service
charges
1.93 1.130 100
Flexibility in providing
loans
1.94 1.099 100
Government is supporting 1.93 1.103 100

18MANAGEMENT
SMEs
Timely payments 1.94 1.043 100
Removing subsidy 1.91 1.138 100
Increase in visa fees 1.92 1.079 100
Factors affecting SMEs
performances
2.55 1.104 100
Service quality 1.98 1.110 100
Flexibility of operations 1.93 1.130 100
Cost of operations 1.87 1.070 100
Most affected sector 2.87 1.353 100
TABLE 2: ITEM STATISTICS
(Source: As created by author)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
High interest rate 22.77 85.916 .861 .921
government service
charges
22.77 84.947 .864 .921
Flexibility in providing
loans
22.76 85.558 .859 .921
Government is supporting
SMEs
22.77 85.229 .873 .921
Timely payments 22.76 86.467 .860 .922
Removing subsidy 22.79 84.612 .875 .920
Increase in visa fees 22.78 85.850 .861 .921
Factors affecting SMEs
performances
22.15 98.371 .212 .945
Service quality 22.72 85.194 .869 .921
Flexibility of operations 22.77 84.442 .891 .920
Cost of operations 22.83 86.345 .842 .922
Most affected sector 21.83 104.506 -.076 .960
TABLE 3: ITEM TOTAL STATISTICS
(Source: As created by author)

19MANAGEMENT
4.3 QUANTITATIVE ANALYSIS
Age
Frequency Percent Valid Percent Cumulative Percent
Valid Less
than 24
30 30.0 30.0 30.0
25-34 20 20.0 20.0 50.0
35-44 18 18.0 18.0 68.0
45-54 17 17.0 17.0 85.0
55 and
above
15 15.0 15.0 100.0
Total 100 100.0 100.0
TABLE 4: AGE
(Source: As created by author)
Graph 1: Age
(Source: As created by author)
The purpose of the question is to highlight the age of the participants in the research.
The results show that 30% of the respondents are below the age of 24, 20% respondent are
between the age group of 25-34, 18% respondents are between the age group of 35-44, 17%
respondents are between the age group of 45-54 and remaining participants above the age of
55. This shows that there is diversity in the age group of the respondents which means that
variety of perspective is expected from both new and experienced employees.

20MANAGEMENT
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 46 46.0 46.0 46.0
Female 54 54.0 54.0 100.0
Total 100 100.0 100.0
TABLE 5: GENDER
(Source: As created by author)
Graph 2: Gender
(Source: As created by author)
The purpose of the given question is to identify the gender of the participants in the
research. This result shows that 54% respondents are female and remaining are male. This
shows that there is equal contribution from both the genders.
High interest rate
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
40 40.0 40.0 40.0
Agree 43 43.0 43.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 6 6.0 6.0 95.0
Strongly
disagree
5 5.0 5.0 100.0
Total 100 100.0 100.0

21MANAGEMENT
TABLE 6: HIGH INTEREST RATE
(Source: As created by author)
Graph 3: High interest rate
(Source: As created by author)
The purpose of the question was to evaluate whether the financial companies are
charging high interest rate after the fall in fuel prices in Oman. The results have shown that
43% have agreed and 40% have strongly agreed to the question. On the other hand, 6%
respondents are indifferent to the research question, 6% have disagreed to the research
question and 5% have strongly disagreed to the research question. This shows that majority
of the small and medium scale businesses have to face high interest rates from the financial
institutions as they require funding while operating in the market.
government service charges
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
42 42.0 42.0 42.0
Agree 41 41.0 41.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 4 4.0 4.0 93.0
Strongly
disagree
7 7.0 7.0 100.0
Total 100 100.0 100.0
TABLE 6: GOVERNMENT SERVICE CHARGES
(Source: As created by author)

22MANAGEMENT
Graph 4: Government service charges
(Source: As created by author)
The objective of the question was to evaluate whether there has been increases
government service charges after the fall in fuel prices in Oman. The results have shown that
41% have agreed and 42% have strongly agreed to the question. On the other hand, 6%
respondents are indifferent to the research question, 4% have disagreed to the research
question and 7% have strongly disagreed to the research question. This indicate that SMEs
were forced to pay high services charges to the government which has resulted in
sustainability challenges for the business entities.
Flexibility in providing loans
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
40 40.0 40.0 40.0
Agree 43 43.0 43.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 5 5.0 5.0 94.0
Strongly
disagree
6 6.0 6.0 100.0
Total 100 100.0 100.0
TABLE 7: FLEXIBILITY IN PROVIDING LOANS
(Source: As created by author)

23MANAGEMENT
Graph 5: Flexibility in providing loans
(Source: As created by author)
The purpose of the question was to evaluate whether the financial companies have not
been flexible in providing loans after the fall in fuel prices in Oman. The results have shown
that 43% have agreed and 40% have strongly agreed to the question. On the other hand, 6%
respondents are indifferent to the research question, 5% have disagreed to the research
question and 6% have strongly disagreed to the research question. This shows that the
companies in the financial sector have been cautious about providing loans to the small scale
organizations due to the current market conditions and increase in inflation rate. There has
been decreasing in consumption rate of the population so the financial companies are
reluctant in taking risks and are aiming to hedge their funds.
Government is supporting SMEs
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
41 41.0 41.0 41.0
Agree 42 42.0 42.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 5 5.0 5.0 94.0
Strongly
disagree
6 6.0 6.0 100.0
Total 100 100.0 100.0
TABLE 8: GOVERNMENT IS SUPPORTING SMES
(Source: As created by author)

24MANAGEMENT
Graph 6: Government is supporting SMEs
(Source: As created by author)
The purpose of the question was to evaluate whether the government is supporting the
small and medium scale organizations by providing training and development programs after
the fall in fuel prices in Oman. The results have shown that 42% have agreed and 41% have
strongly agreed to the question. On the other hand, 6% respondents are indifferent to the
research question, 5% have disagreed to the research question and 6% have strongly
disagreed to the research question. This indicate that government have been trying to improve
the sustainability conditions for the small scale organizations by reducing the dependency of
the economy of Oman on oil and gas sector.
Timely payments
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
38 38.0 38.0 38.0
Agree 45 45.0 45.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 7 7.0 7.0 96.0
Strongly
disagree
4 4.0 4.0 100.0
Total 100 100.0 100.0
TABLE 9: TIMELY PAYMENTS
(Source: As created by author)

25MANAGEMENT
Graph 7: Timely payments
(Source: As created by author)
The question aims to evaluate whether the debtors are making timely payments after
the fall in fuel prices in Oman. The results have shown that 45% have agreed and 38% have
strongly agreed to the question. On the other hand, 6% respondents are indifferent to the
research question, 7% have disagreed to the research question and 4% have strongly
disagreed to the research question. This shows that majority of the small scale organizations
are not receiving their payments on time due to the fall in the market conditions and slow
progress in the trade conditions.
Removing subsidy
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
44 44.0 44.0 44.0
Agree 39 39.0 39.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 4 4.0 4.0 93.0
Strongly
disagree
7 7.0 7.0 100.0
Total 100 100.0 100.0
TABLE 10: REMOVING SUBSIDY
(Source: As created by author)

26MANAGEMENT
Graph 8: Removing subsidy
(Source: As created by author)
The purpose of the question is to examine whether the removal off subsidy by the
government has increased the pressure on the SMEs after the fall in fuel prices in Oman. The
results have shown that 39% have agreed and 44% have strongly agreed to the question. On
the other hand, 6% respondents are indifferent to the research question, 4% have disagreed to
the research question and 7% have strongly disagreed to the research question. This clearly
indicate that the small scale companies have been struggling after the government has
stopped aiding the SMEs.
Increase in visa fees
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
41 41.0 41.0 41.0
Agree 42 42.0 42.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 6 6.0 6.0 95.0
Strongly
disagree
5 5.0 5.0 100.0
Total 100 100.0 100.0
TABLE 11: INCREASE IN VISA FEES
(Source: As created by author)

27MANAGEMENT
Graph 9: Increase in visa fees
(Source: As created by author)
The purpose of the question is to examine whether the increase in visa fees for the
non-Omani workers have affected the SMEs after the fall in fuel prices in Oman. The results
have shown that 42% have agreed and 41% have strongly agreed to the question. On the
other hand, 6% respondents are indifferent to the research question, 6% have disagreed to the
research question and 5% have strongly disagreed to the research question. The respondents
have been facing issues as it has been difficult to manage their workforce and reduce the
overall cost of operations.
Factors affecting SMEs performances
Frequency Percent Valid Percent Cumulative Percent
Valid 1 22 22.0 22.0 22.0
2 27 27.0 27.0 49.0
3 25 25.0 25.0 74.0
4 26 26.0 26.0 100.0
Total 100 100.0 100.0
TABLE 12: FACTORS AFFECTING SMES PERFORMANCES
(Source: As created by author)

28MANAGEMENT
Graph 10: Factors affecting SMEs performances
(Source: As created by author)
The purpose of the question is to analyse the factors affecting the performances of the
SMEs after the fall in fuel prices in Oman. The results have shown that 22% have considered
financial policies of companies as a significant factor and 27% have considered delay in
receiving payments as a significant factor. On the other hand, 25% have considered
government rules and regulations as significant factor and remaining have considered other
factors to be significant. In this question, it can be seen that there is all round impact of the
above mentioned factors on the performances of the SMEs. The companies have been
impacted by government policies, delay in debtor payments and financial companies policies
almost equally which have increased the risk within the organization.
Service quality
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
37 37.0 37.0 37.0
Agree 46 46.0 46.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 4 4.0 4.0 93.0
Strongly
disagree
7 7.0 7.0 100.0
Total 100 100.0 100.0

29MANAGEMENT
TABLE 13: SERVICE QUALITY
(Source: As created by author)
Graph 11: Service quality
(Source: As created by author)
The purpose of the question is to examine whether the service quality of the SMEs
have been affected after the fall in fuel prices in Oman. The results have shown that 46%
have agreed and 37% have strongly agreed to the question. On the other hand, 6%
respondents are indifferent to the research question, 4% have disagreed to the research
question and 7% have strongly disagreed to the research question. This clearly indicate that
the majority of the organization in meeting the quality of service they needed to address.
Flexibility of operations
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
42 42.0 42.0 42.0
Agree 41 41.0 41.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 4 4.0 4.0 93.0
Strongly
disagree
7 7.0 7.0 100.0
Total 100 100.0 100.0
TABLE 14: FLEXIBILITY OF OPERATIONS
(Source: As created by author)

30MANAGEMENT
Graph 12: Flexibility of operations
(Source: As created by author)
The purpose of the question is to examine whether the flexibility of the operation s
have been affected after the fall in fuel prices in Oman. The results have shown that 41%
have agreed and 42% have strongly agreed to the question. On the other hand, 6%
respondents are indifferent to the research question, 4% have disagreed to the research
question and 7% have strongly disagreed to the research question. This also shows that the
companies are facing issues in managing their operational flexibility.
Cost of operations
Frequency Percent Valid Percent Cumulative Percent
Valid Strongly
agree
45 45.0 45.0 45.0
Agree 38 38.0 38.0 83.0
Indifferent 6 6.0 6.0 89.0
Disagree 7 7.0 7.0 96.0
Strongly
disagree
4 4.0 4.0 100.0
Total 100 100.0 100.0
TABLE 15: COST OF OPERATIONS
(Source: As created by author)

31MANAGEMENT
Graph 13: Cost of operations
(Source: As created by author)
The purpose of the question is to examine whether the cost of operations have
affected the fall in fuel prices in Oman. The results have shown that 38% have agreed and
45% have strongly agreed to the question. On the other hand, 6% respondents are indifferent
to the research question, 4% have disagreed to the research question and 7% have strongly
disagreed to the research question. This indicates that cost of operations have increased
significantly due to removal of subsidy, increase in interest rate charged by the financial
institutions and other factors.
Most affected sector
Frequency Percent Valid Percent Cumulative Percent
Valid 1 20 20.0 20.0 20.0
2 24 24.0 24.0 44.0
3 19 19.0 19.0 63.0
4 23 23.0 23.0 86.0
5 14 14.0 14.0 100.0
Total 100 100.0 100.0
TABLE 16: MOST AFFECTED SECTOR
(Source: As created by author)

32MANAGEMENT
Graph 14: Most affected sector
(Source: As created by author)
The purpose of the question is to evaluate the sector that has been affected the most
due to the fall in fuel prices in Oman. The results have shown that 20% have considered
manufacturing sector to be the most affected, 24% have considered retail sector as the most
affected sector and 19% have considered hospitality sector as the most affected sector. On the
other hand, 23% of the employees consider agricultural sector and 14% have considered
construction sector as the most affected.
4.4 CORRELATION ANALYSIS
The correlation analysis among all the elements in the research clearly shows that
there is significant relationship among the elements. It can be seen that there is strong
correlation among the elements ranging from 0.7 to 0.85 at two tailed significance. This
shows that these elements are interlinked to each other and fall in fuel prices has affected all
these elements simultaneously.
4.5 REGRESSION ANALYSIS
The regression analysis between the models shows significant relationship where the
F value is .000 which means that there is significant relationship between service quality and
the predictors. The value of multiple R is .901 which shows that the correlation among the
elements is strongly positive and the model is precise. The value of R square shows a value of
.812 which is high and shows that the goodness of fit of the model is very high. The value of

33MANAGEMENT
Durbin Watson is 1.738 which means that there is no autocorrelation among the elements. In
case of establishing the relationship between flexibility of operations and predictors, similar
results are shown. The third regression analysis measured the relationship between cost of
operation and predictors have shown similar results. This means that the fall of fuel prices
have adverse affected the performance of the organizations and the null hypothesis can be
rejected.
Model Summaryb
Mode
l
R R Square Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .901a .812 .798 .499 1.738
a. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely
payments , government service charges , Flexibility in providing loans, Removing subsidy ,
High interest rate
b. Dependent Variable: Service quality
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1 Regression 99.047 7 14.150 56.814 .000b
Residual 22.913 92 .249
Total 121.960 99
a. Dependent Variable: Service quality
b. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely payments
, government service charges , Flexibility in providing loans, Removing subsidy , High interest rate
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .028 .111 .249 .804
High interest rate .183 .109 .177 1.671 .098

34MANAGEMENT
government service
charges
.109 .094 .111 1.166 .247
Flexibility in providing
loans
-.030 .100 -.030 -.301 .764
Government is supporting
SMEs
.055 .100 .055 .554 .581
Timely payments .388 .094 .364 4.111 .000
Removing subsidy .116 .099 .119 1.173 .244
Increase in visa fees .191 .109 .186 1.756 .082
a. Dependent Variable: Service quality
Residuals Statisticsa
Minimum Maximu
m
Mean Std.
Deviation
N
Predicted Value 1.01 4.92 1.98 1.000 100
Residual -.813 .960 .000 .481 100
Std. Predicted Value -.971 2.942 .000 1.000 100
Std. Residual -1.630 1.925 .000 .964 100
a. Dependent Variable: Service quality
Model Summaryb
Mode
l
R R Square Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .898a .807 .792 .515 2.050
a. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely
payments , government service charges , Flexibility in providing loans, Removing subsidy ,
High interest rate
b. Dependent Variable: Flexibility of operations
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1 Regression 102.109 7 14.587 54.997 .000b
Residual 24.401 92 .265
Total 126.510 99

35MANAGEMENT
a. Dependent Variable: Flexibility of operations
b. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely payments
, government service charges , Flexibility in providing loans, Removing subsidy , High interest rate
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) -.019 .114 -.169 .866
High interest rate .195 .113 .186 1.732 .087
government service
charges
.199 .097 .199 2.050 .043
Flexibility in providing
loans
.194 .104 .189 1.873 .064
Government is supporting
SMEs
.144 .103 .140 1.389 .168
Timely payments .149 .097 .138 1.535 .128
Removing subsidy .172 .102 .173 1.688 .095
Increase in visa fees -.043 .112 -.041 -.384 .702
a. Dependent Variable: Flexibility of operations
Residuals Statisticsa
Minimum Maximu
m
Mean Std.
Deviation
N
Predicted Value .99 4.78 1.93 1.016 100
Residual -1.000 .860 .000 .496 100
Std. Predicted Value -.925 2.806 .000 1.000 100
Std. Residual -1.942 1.670 .000 .964 100
a. Dependent Variable: Flexibility of operations
Model Summaryb
Mode
l
R R Square Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson

36MANAGEMENT
1 .867a .752 .734 .552 1.946
a. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely
payments , government service charges , Flexibility in providing loans, Removing subsidy ,
High interest rate
b. Dependent Variable: Cost of operations
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1 Regression 85.250 7 12.179 39.930 .000b
Residual 28.060 92 .305
Total 113.310 99
a. Dependent Variable: Cost of operations
b. Predictors: (Constant), Increase in visa fees, Government is supporting SMEs, Timely payments
, government service charges , Flexibility in providing loans, Removing subsidy , High interest rate
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .095 .123 .772 .442
High interest rate .259 .121 .261 2.143 .035
government service
charges
.250 .104 .265 2.411 .018
Flexibility in providing
loans
.079 .111 .082 .715 .476
Government is supporting
SMEs
-.002 .111 -.002 -.018 .985
Timely payments .091 .104 .089 .870 .387
Removing subsidy .145 .109 .155 1.331 .187
Increase in visa fees .098 .120 .099 .811 .419
a. Dependent Variable: Cost of operations

37MANAGEMENT
Residuals Statisticsa
Minimum Maximu
m
Mean Std.
Deviation
N
Predicted Value 1.02 4.51 1.87 .928 100
Residual -.937 .984 .000 .532 100
Std. Predicted Value -.921 2.848 .000 1.000 100
Std. Residual -1.696 1.782 .000 .964 100
a. Dependent Variable: Cost of operations
4.6 SUMMARY
This chapter has provided a detail analysis of the impact of fall of fuel prices on the
small and medium scale organizations in Oman. The analysis has shown that there is
significant negative impact of fuel prices fall on the SMEs. The next chapter has linked the
objective with the analysis to draw relevant conclusion. It has also provided suitable
recommendation based on the current situation and results.

38MANAGEMENT
5.0 CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION
The analysis of the research has developed key essential findings that highlight the
impact of the fall in fuel prices on the small and medium scale organizations. The key
findings shows that there has been significant increase in interest rates in financial
institutions. This means that the financial organizations are charging more for their services
to the SMEs. The frequency loan approvals have decreased and the financial companies have
become stringent in providing investment funds to these small scale organizations. Moreover,
the removal of subsidy from the government has affected the micro organizations
tremendously as they are not getting enough support to flourish. The small scale
organizations having very less employees does not have the capability of adapting to their
changes due to their limited capability of resources. Moreover, the cost of visa fees for the
non- Omani employees have increased which means that the cost of human resources have
increased. This affects the overall operational cost and the profit margin of these
organizations. The regression analysis conducted has clearly shown significant values where
the null hypothesis has been rejected and the alternative hypothesis has been accepted.
5.2 RECOMMENDATIONS
The research has suggested following strategies and policies that may help the SMEs
in addressing the challenges faced by them:
 The government needs to promote the diversification of the domestic sectors by
encouraging the SMEs
 The government needs to improve the flexibility of the rules and regulations for the
SMEs
 SMEs need to develop necessary market skills for analysing the market conditions,
conduct feasibility analysis and develop effective strategies to make changes to their
organizational strategies. The SMEs have to be flexible to adapt to the changes in the
market and in order to address the macro changes, the organization needs introduce
innovation into their organizational strategy. This would facilitate in increasing in
market adaptability
 In order to leverage their position to the financial institutions, organizations should
manage their liquidity so that they can take control of contingent situations.

39MANAGEMENT
REFERENCES
Apergis, N. and Vouzavalis, G., 2018. Asymmetric pass through of oil prices to gasoline
prices: Evidence from a new country sample. Energy policy, 114, pp.519-528.
Aryee, S., Walumbwa, F.O., Seidu, E.Y. and Otaye, L.E., 2016. Developing and leveraging
human capital resource to promote service quality: Testing a theory of performance. Journal
of management, 42(2), pp.480-499.
Asane-Otoo, E. and Schneider, J., 2015. Retail fuel price adjustment in Germany: A threshold
cointegration approach. Energy Policy, 78, pp.1-10.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
press.
Bonett, D.G. and Wright, T.A., 2015. Cronbach's alpha reliability: Interval estimation,
hypothesis testing, and sample size planning. Journal of Organizational Behavior, 36(1),
pp.3-15.
Boughanmi, H. and Khan, M.A., 2018. Welfare and Distributional Effects of the Energy
Subsidy Reform in the Gulf Cooperation Council Countries: The Case of Sultanate of
Oman. International Journal of Energy Economics and Policy, 9(1), pp.228-236.
Dikova, D., Jaklič, A., Burger, A. and Kunčič, A., 2016. What is beneficial for first-time
SME-exporters from a transition economy: A diversified or a focused export-
strategy?. Journal of World Business, 51(2), pp.185-199.
Goertzen, M.J., 2017. . Introduction to Quantitative Research and Data. Library Technology
Reports, 53(4), pp.12-18.
Hemmeter, M.L., Hardy, J.K., Schnitz, A.G., Adams, J.M. and Kinder, K.A., 2015. Effects of
training and coaching with performance feedback on teachers’ use of Pyramid Model
practices. Topics in Early Childhood Special Education, 35(3), pp.144-156.
Hughes, J.A. and Sharrock, W.W., 2016. The philosophy of social research. Routledge.
Krane, J. and Hung, S.Y., 2016. Energy Subsidy Reform in the Persian Gulf: The End of the
Big Oil Giveaway. Issue Brief, (04.28. 16).
Krane, J., 2015, January. Reforming end-user energy prices could rationalize GCC energy
demand. In Oxford Energy Forum (No. 102). Oxford Institute for Energy Studies.

40MANAGEMENT
Kratochwill, T.R. and Levin, J.R. eds., 2015. Single-case research design and analysis
(psychology revivals): new directions for psychology and education. Routledge.
Kucukaltan, B., Irani, Z. and Aktas, E., 2016. A decision support model for identification and
prioritization of key performance indicators in the logistics industry. Computers in Human
Behavior, 65, pp.346-358.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Masa'deh, R.E., Obeidat, B.Y. and Tarhini, A., 2016. A Jordanian empirical study of the
associations among transformational leadership, transactional leadership, knowledge sharing,
job performance, and firm performance: A structural equation modelling approach. Journal
of Management Development, 35(5), pp.681-705.
Matar, W., Murphy, F., Pierru, A. and Rioux, B., 2015. Lowering Saudi Arabia's fuel
consumption and energy system costs without increasing end consumer prices. Energy
Economics, 49, pp.558-569.
Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K.,
2015. Purposeful sampling for qualitative data collection and analysis in mixed method
implementation research. Administration and Policy in Mental Health and Mental Health
Services Research, 42(5), pp.533-544.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South
Western Cengage.
Saunders, M.N., Lewis, P., Thornhill, A. and Bristow, A., 2015. Understanding research
philosophy and approaches to theory development.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Serletis, A. and Xu, L., 2016. Volatility and a century of energy markets dynamics. Energy
Economics, 55, pp.1-9.
www.dw.com 2019. Continuing low oil prices cause crisis in Oman | DW | 17.07.2015.
[online] DW.COM. Available at: https://www.dw.com/cda/en/continuing-low-oil-prices-
cause-crisis-in-oman/a-18584787 [Accessed 16 Apr. 2019].

41MANAGEMENT
Bouazza, A.B., Ardjouman, D. and Abada, O., 2015. Establishing the factors affecting the
growth of small and medium-sized enterprises in Algeria. American International journal of
Social science, 4(2), pp.101-115.
Zafar, A. and Mustafa, S., 2017. SMEs and its role in economic and socio-economic
development of Pakistan. International Journal of Academic Research in Accounting, Finance
and Management Sciences, 6(4).
World Bank 2018. How is Oman Reacting to Low Oil Prices?. [online] World Bank.
Available at: http://www.worldbank.org/en/country/gcc/publication/economic-brief-oman-
july-2016 [Accessed 5 May 2019].

42MANAGEMENT
APPENDICES
APPENDIX 1
Correlations
High
interest
rate
governmen
t service
charges
Flexibility
in
providing
loans
Governme
nt is
supporting
SMEs
High interest rate Pearson
Correlation
1 .769** .791** .779**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
government service
charges
Pearson
Correlation
.769** 1 .809** .790**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Flexibility in
providing loans
Pearson
Correlation
.791** .809** 1 .838**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Government is
supporting SMEs
Pearson
Correlation
.779** .790** .838** 1
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Timely payments Pearson
Correlation
.789** .802** .790** .778**
Sig. (2-tailed) .000 .000 .000 .000

43MANAGEMENT
N 100 100 100 100
Removing subsidy Pearson
Correlation
.812** .788** .827** .848**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Increase in visa fees Pearson
Correlation
.874** .815** .779** .767**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Service quality Pearson
Correlation
.828** .804** .777** .782**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Flexibility of
operations
Pearson
Correlation
.810** .818** .834** .822**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Cost of operations Pearson
Correlation
.808** .803** .775** .754**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Correlations
Timely Removing Increase in Service

44MANAGEMENT
payments subsidy visa fees quality
High interest rate Pearson
Correlation
.789** .812** .874** .828**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
government service
charges
Pearson
Correlation
.802** .788** .815** .804**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Flexibility in
providing loans
Pearson
Correlation
.790** .827** .779** .777**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Government is
supporting SMEs
Pearson
Correlation
.778** .848** .767** .782**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Timely payments Pearson
Correlation
1 .762** .767** .846**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Removing subsidy Pearson
Correlation
.762** 1 .800** .798**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Increase in visa fees Pearson .767** .800** 1 .825**

45MANAGEMENT
Correlation
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Service quality Pearson
Correlation
.846** .798** .825** 1
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Flexibility of
operations
Pearson
Correlation
.802** .827** .782** .796**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Cost of operations Pearson
Correlation
.763** .787** .796** .814**
Sig. (2-tailed) .000 .000 .000 .000
N 100 100 100 100
Correlations
Flexibility of
operations
Cost of
operations
High interest rate Pearson Correlation .810** .808**
Sig. (2-tailed) .000 .000
N 100 100
government service charges Pearson Correlation .818** .803**
Sig. (2-tailed) .000 .000
N 100 100

46MANAGEMENT
Flexibility in providing loans Pearson Correlation .834** .775**
Sig. (2-tailed) .000 .000
N 100 100
Government is supporting
SMEs
Pearson Correlation .822** .754**
Sig. (2-tailed) .000 .000
N 100 100
Timely payments Pearson Correlation .802** .763**
Sig. (2-tailed) .000 .000
N 100 100
Removing subsidy Pearson Correlation .827** .787**
Sig. (2-tailed) .000 .000
N 100 100
Increase in visa fees Pearson Correlation .782** .796**
Sig. (2-tailed) .000 .000
N 100 100
Service quality Pearson Correlation .796** .814**
Sig. (2-tailed) .000 .000
N 100 100
Flexibility of operations Pearson Correlation 1 .786**
Sig. (2-tailed) .000
N 100 100
Cost of operations Pearson Correlation .786** 1
Sig. (2-tailed) .000
N 100 100

47MANAGEMENT
**. Correlation is significant at the 0.01 level (2-tailed).
APPENDIX 2
1. Age?
a) Less than 24 b) 25-34 c) 35-44 d) 45-54 e) 55 and above
2. Gender?
a) Male
b) Female
3. How far do you agree that financial companies are charging high interest rates after
the fall in oil prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
4. How far do you agree that government service charges are high after the fall in oil
prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
5. How far do you agree that financial companies have not been flexible in providing
loans after the fall of fuel prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
6. How far do you agree that government is supporting SMEs by offering training and
development program?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
7. How far do you agree that organizations are not receiving timely payments from the
debtors?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree

48MANAGEMENT
8. How far do you agree that removing subsidy have increased the pressure on the small
scale organizations?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
9. How far do you agree that increase in visa fees for the non-Omani workers has
affected the SMEs?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
10. What are the factors affecting the performance of the SMEs?
a) Financial company policies
b) Delay in receiving payment
c) Government regulations and rules
d) Others
11. How far do you agree that quality of service is affected due to the fall of fuel prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
12. How far do you agree that flexibility of operations decreases due to the fall of fuel
prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
13. How far do you agree that cost of operations increases due to the fall of fuel prices?
a) Strongly agree b) Agree c) Indifferent d) Disagree e) Strongly disagree
14. Kindly specify the sector that is mostly affected by the fall of fuel prices?
a) Manufacturing sector
b) Retail sector
c) Hospitality sector
d) Agriculture sector
e) Construction sector